U.S. District Court for the Eastern District of New York Rules That a Party Perfects its Security Interests in Disputed Loans by Taking Possession of the Notes as Opposed to Recording the Mortgage Assignments, Pursuant to UCC Article 9

Posted by & filed under 2007, Downstream litigation, New York, Note ownership litigation.

In Provident Bank v. Community Home Mortgage Corp., 498 F.Supp.2d 558, 558 (E.D.N.Y. 2007) the U.S. District Court for the Eastern District of New York ruled in favor of intervenor-plaintiff NetBank, granting its cross motion for summary judgment against intervenor-plaintiff, Southwest Securities Bank (herein described as Southwest) in a dispute regarding conflicting recorded mortgage assignments… Read more »

Court Holds That MERS Assignment, in Isolation, Could Not Prove Ownership

Posted by & filed under 2007, Downstream litigation, Downstream litigation by date, MERS/Bank lacks standing, North Carolina, Note ownership litigation.

The court deciding In Re Wilhelm (Case No. 06-51747) was faced with the issue of when actual notes prove that the note’s chain of ownership is unclear. In reaching their decision the court found that in such a situation, the MERS assignment could not, on its own, prove ownership of the note. The court in… Read more »

Eleventh Circuit Holds that Claim under TILA is Time-barred

Posted by & filed under 2007, Downstream litigation, Georgia.

In Johnson v. Mortgage Electronic Registration Systems, Inc., 252 Fed. Appx. 293 (11th Circ. 2007), the Eleventh Circuit dismissed borrower’s claims under the Truth in Lending Act (“TILA”), because they were time-barred. On March 17, 2001 Johnson executed a loan from Homegold Financial Inc. The loan was transferred to Household Mortgage Services (“Household”) and MERS held… Read more »

Michigan Court of Appeals Holds that Foreclosure is Void Because Mortgagee Commenced the Foreclosure Before It Obtained an Interest in the Indebtedness

Posted by & filed under 2007, Downstream litigation, Michigan.

In Davenport v. HSBC Bank USA, 739 N.W.2d 383 (Mich. Ct. App. 2007), the Court of Appeals held that the foreclosure was void ab initio because Assignee Defendant did not have an interest in the indebtedness secured by the mortgage when it commenced the foreclosure proceedings. Mortgagor Plaintiff executed a mortgage. “The initial mortgagee assigned… Read more »

Florida Appellate Court Holds That if MERS was Holder and Owner of Note, it Would Have Standing to Foreclose

Posted by & filed under 2007, Downstream litigation, Florida.

In MERS v. Azize, 965 So.2d 151 (2007), the Second District Court of Appeal of Florida reversed the trial court’s dismissal of a foreclosure action with prejudice and remanded because lack of ownership of the beneficial interest in a note does not deprive MERS of standing to foreclose. In 2004, Azize (“Borrower”) executed a note… Read more »

Florida Third District Court of Appeals Holds that MERS has Standing to Foreclose because no Rights are Affected

Posted by & filed under 2007, Downstream litigation, Florida, MERS/Bank has standing.

In MERS, Inc. v. Revoredo, 955 So.2d 33 (FL 2d DCA, 2007), MERS brought a foreclosure action against plaintiffs, based on a note of which it was the holder. MERS did not “own” the note even though it was called the “mortgagee” on the mortgage note. The Florida trial court dismissed the action for lack… Read more »